Calculating The True Cost Of An Employee

It’s not just salary to think about….

Basic Salary

This is the fundamental cost and the starting point of your calculation.

Employer's National Insurance Contributions

Employers must pay National Insurance Contributions (NICs) on top of salaries. The rate depends on the employee's earnings but typically it's around 13.8% for earnings above the secondary threshold.

Employer's Pension Contributions

Under auto-enrolment, employers must contribute to their employees' pension schemes. The minimum contribution is usually around 3% of the employee's qualifying earnings.

Benefits and Bonuses

This includes any health insurance, car allowances, bonuses, or other benefits. Each of these has a cost associated with it.

Recruitment Costs

These include advertising job vacancies, agency fees, and the time spent by staff in interviewing and selecting candidates.

Equipment and Overheads

This includes the cost of providing a workspace, computer equipment, software licenses, and other necessary tools for the employee to perform their job.

Sick Leave, Holiday Pay, and Other Absences

Employers need to account for the cost of paid leave, including sick leave, holiday pay, and other absences.

Training and Development Costs

The cost of training and developing an employee can be significant, especially if specialised or ongoing training is required.

Insurance and Liability

This includes any additional insurance costs the employer might incur due to adding an employee, such as liability insurance.

Administrative Costs

The administrative burden of managing payroll, HR functions, etc., also adds to the cost.

A practical guideline is to consider that the actual cost of employing someone is typically 1.5 to 1.75 times their salary! This estimate covers the comprehensive expenses of having the employee on board but does not include the costs associated with achieving targets and objectives aligned with your business plan.

outsourcing-payroll

Kimon can ease the pressure on your business

 

Hourly Rate

Per week (37.5 hours)

Per month

Per annum

PAYE Employer NI Contribution (13.8%)

Employer Pension Contribution (3%)

Total Salary Cost

Kimon Cost (37.5 hours per week)

Saving per annum, per national living wage employee

Under 18

£6.40

£240.00

£1,040.00

£12,480.00

£1,722.24

£374.40

£14,576.64

£8,400.00

£6,176.64

42.37%

18-20

£8.60

£322.50

£1,397.50

£16,770.00

£2,314.26

£503.10

£19,587.36

£8,400.00

£11,187.36

57.12%

21 and over

£11.44

£429.00

£1,859.00

£22,308.00

£3,078.50

£669.24

£26,055.74

£8,400.00

£17,655.74

67.76%



Entry level resource

Normally fresh out of education if employed in the UK, we ensure at least 3 years experience in a similar role.
£ 800 + VAT Monthly or only £8,400 + VAT annually if paid up front
  • Data Entry Clerks
  • Admin Assistants
  • Customer Service Reps
  • Junior Bookkeeper
  • Telemarketer
  • Help Desk Technician
  • Call Center Agent
  • Virtual Assistants
  • HR Assistant
  • Marketing Assistant
  • Transcriptionist
  • Research Assistant
  • Scheduler
  • Proofreader
Popular

Experienced Resource

Normally have done another job if employed in the UK, we ensure at least 5 years experience in a similar role.
£ 1,000 + VAT Monthly or only £10,200 + VAT annually if paid up front
  • Graphic Designers
  • Content Writers
  • Social Media Management
  • Video Editing
  • Web Designers
  • Web Developers
  • SEO Executives
  • Digital Marketing Executives
  • PPC Experts
  • HR Management
  • Senior Business Analysts
  • Senior Bookkeepers
  • Project Managers

Experienced Management Resource

Finding great senior management can be a challenge. We ensure at least 8 years experience in a similar role.
£ 4,500 + VAT Monthly or only £48,000 + VAT annually if paid up front
  • Chief Financial Officers
  • IT Directors
  • HR Directors
  • Marketing Directors
  • Legal Counsel
  • Project Directors
  • Sales Directors
  • Business Strategy Consultants
  • PR Director

Cost Efficiency

Outsourcing can be more cost-effective than maintaining in-house teams. It reduces the need for dedicated internal staff and infrastructure, thus lowering overhead costs.

Focus on Core Business Activities

By outsourcing administration, your company can focus more on its core business activities without being sidetracked by mundane administration work.

Improved Service Quality

Outsourcing Administration work often leads to an improvement in the quality and efficiency of business services. We can enhance the overall employee experience, streamline HR processes, and provide more effective employee support and development programs.This professional level of service is difficult to achieve with in-house resources, especially for small to medium-sized businesses.

Scalability

Outsourcing offers scalability benefits. As your business grows or experiences fluctuations in staffing needs, we can easily adjust to these changes. This flexibility is particularly valuable for businesses undergoing rapid growth, downsizing, or seasonal variations, as it allows for efficient scaling of employee resource without the need to hire or lay off internal staff.

We Already Work With The Best

How we work?

1

Free Consultation

During this consultation we will discuss and define the required work in detail so that there is no confusion on the work expected to be delivered and the type of person needed.

2

Proposal

We provide a proposal that clearly defines the workload and expectation of us along with timescales and a defined job description for candidate recruitment.

3

Start work

Payments are monthly in advance (first payment is for 2 months) but you are not committed into a long contract and can cancel with only 60 working days notice

4

Review and Revise

It is important to regularly review and fix any problems, you will direct your staff in work but we manage them daily to make sure it gets done and also run a defined QC.

Read More About Outsourcing